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It contains a set of 14 original and highly efficient techniques to improve your trading entries and it did true magic for Al (and many other traders too).

So, let’s get to Al’s 3rd case study.

First, Al deliberately took a very weak, untradable emini Dow Jones breakout trading strategy. This strategy is literally nothing to write home about, which makes it a perfect candidate to test the ‘Smashing False Breakouts’ techniques on.

This is the backtest summary report:

As you can see, the problem with this testing strategy is basically everything:

The Average Trade is too small (15.75 USD),

The drawdown is large (13,195 USD),

And it has a horrible Net Profit / Max. Drawdown ratio (2.57).

Next, Al took all 14 ‘Smashing False Breakouts’ techniques and disassembled them into individual “occurrences”. (This is not really necessary however, Al was driven by deeper curiosity and wanted to test each “occurrence” individually).

What do I mean by “occurrences”?

For example, an entry signal can happen either above or below a certain Moving Average. These are two different occurrences, and each will have a different impact on the quality of your entries. (This is NOT an actual example from the ‘Smashing False Breakouts’ course, it is just an example for demonstration here).

When Al disassembled all 14 ‘Smashing False Breakouts’ techniques, he was left with a bit over 100 occurrences.

Then he tested each individually, with these results:

To explain this chart further:

The blue horizontal “baseline” shows the Net Profit of the original testing strategy. Each vertical bar represents the result of one occurrence. The most important are the negative value occurrences (13, 32, 36, etc). These are the occurrences that negatively impact the trading entries. Thus, NOT trading under these occurrences will help you to potentially avoid a lot of false entries.

And this is exactly what Al did next.

He started removing certain “dangerous” occurrences from his trading.

Just removing the first one (#13) improved the results significantly:

Original

Smashing

Delta

Net Profit:

$33,920

$27,355

-19.35 %

Trades:

2,154

1,571

-27.06%

Avg Trade:

$15.75

$17.41

+10.54%

Max C-to-C DD:

$13,195

$6,295

-53.23%

Net Profit/Max DD:

2.57

4.35

+69.26%

Especially see how the Net Profit / Drawdown ratio was improved by +69.26% to much more acceptable levels.

"Tom´s systems and trading approach do really work and can bring good, stable and reasonable returns."

DavidBreakout Trading Student

“Immediately after applying just the time filters from the ‘Smashing False Breakouts’ course, I achieved an absolutely massive improvement.”

ShawnSmashing False Breakouts Student

"Everything from the course works exactly as advertised"!

TrevorMarket Internals Student

"I finished the masterclass in a few days. It is an excellent course and I wished I had that at the beginning of my trading adventure. I was impressed with how generous Tomas is with the know-how he passes on. I think anyone who trades mechanically will find lots of gems. Most of the traders don't have that level of automation and will be amazed to get a full methodology."

ThomasBreakout Strategies Masterclass Student

"After I analysed the work of so many traders for several years , I can count you as one of the handful of genuine traders and educators whose methods actually work."

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DISCLAIMER: Trading involves significant risk of loss and is not suitable for everyone. People can and do lose money. Hypothetical results have many inherent limitations. Past performance is not necessarily indicative of future results.